SM Prime Holdings Reports 37% Growth In Net Income

SM Prime Holdings, one of Southeast Asia's leading integrated property developers, has reported a net income of PHP30.1 billion in the first nine months of 2023.

The mall business segment, which accounts for 57% of SM Prime's consolidated revenues, recorded PHP52.5 billion in the first three quarters of 2023. I Photo: SM Supermalls

This figure represents a 37% increase compared to PHP22.0 billion in the same period in 2022.

The growth is supported by consolidated revenues of PHP92.6 billion, reflecting a 26% increase from the previous year's PHP73.7 billion. The company's consolidated operating income also saw a 29% increase, reaching PHP44.5 billion in 9M2023 from PHP34.6 billion in 9M2022.

In the third quarter of 2023, SM Prime's consolidated net income grew by 35%, amounting to PHP10.7 billion compared to PHP7.9 billion in 3Q2022. Consolidated revenues for the quarter reached PHP32.7 billion, a 20% increase from the PHP27.3 billion reported in the same period last year.

Operating income for this quarter also rose by 17% to PHP15.6 billion from PHP13.3 billion in the corresponding period in 2022.

The mall business segment, which accounts for 57% of SM Prime's consolidated revenues, recorded PHP52.5 billion in the first three quarters of 2023, marking a 37% increase from PHP38.2 billion in the same period of the previous year.

SM Prime's mall rental income also saw significant growth, reaching PHP44.8 billion in 9M2023, a 29% increase from last year's PHP34.7 billion. Other revenue sources within the mall business, such as cinemas, event ticket sales, and other revenues, increased to PHP7.7 billion from PHP3.5 billion in the same period of 2022.

SM Prime's primary residential business, led by SM Development Corp. (SMDC), reported PHP11.1 billion in revenues in 3Q2023, a 20% increase from PHP9.3 billion in 3Q2022.

The primary residential business generated PHP28.7 billion in revenues in the first nine months of 2023, marking a 10% increase from PHP26.1 billion in 9M2022. SMDC's reservation sales reached PHP89.3 billion in the first three quarters of 2023, a 6% increase from the PHP83.9 billion reported in the same period of the previous year.

SM Prime's other key businesses, which include offices, hotels, and convention centers, generated PHP9.5 billion in revenues in the first nine months of 2023, reflecting a 33% growth from PHP7.2 billion in 2022.

The company's office business segment contributed PHP4.9 billion in revenues, marking a 14% increase from the previous year. The hotels and convention centers business segment saw its revenues reach PHP4.6 billion, a 64% increase from 9M2022.

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